The moment an iPad with LTE on Verizon was announced, people started to ask if you could pull your micro-SIM out of a Verizon Wireless smartphone, and use it in your iPad. And, if so, would there be any repercussions for doing so.

Of rules, regulations, and 700 MHz spectrum…

It’s no secret if you poke around, that you can pull your smartphone SIM card out and use it with all sorts of other devices. From the Galaxy Tab 10.1 LTE, to portable hotspot devices like the Novatel MiFi, people have been doing that for awhile. In fact, Verizon was required to…

Verizon appears to be abiding by spectrum auction terms set by the FCC, and is not kicking people off their data plans. The coveted 700 MHz spectrum that Verizon licensed had strings attached… powerful strings. Specifically, the auction rules forbid a carrier from blocking end-user device changes with serial-number restrictions.

In other words, the FCC wanted to ensure that if a user swapped LTE SIMs (when using the new spectrum) that it would be the consumer’s choice to do so, sans penalty.

Verizon is not, however, communicating this in very many forms. In a Verizon FAQ, Verizon did state that you can SIM-swap with any compatible LTE device. Note, they said device, not handset:

Q: Can I use my Verizon Wireless 4G SIM card in a 4G LTE device not purchased from Verizon Wireless?

A: Yes. You may activate any 4G LTE device that has been certified by Verizon Wireless to be compatible with our 4G LTE network, including devices not purchased directly from Verizon Wireless. Simply activate your 4G SIM card on a Verizon Wireless price plan.

On background, executives for Verizon Wireless confirmed that this was partly their vision; to allow customers to drop a SIM card into a broad range of LTE devices, pulled right out of their handset. Some use cases include LTE-enabled Digital SLRs that could be used for professional live reporting of video and photo streams.

Metered data appeared to also be part of this “vision” – but unlimited data users were the big question mark. Knowing the 700 MHz rules, Verizon allowed 3G smartphone customers with unlimited data to upgrade to LTE devices, and keep their unlimited data. In fact, Verizon has even waived throttling rules on unlimited data customers, for those that upgrade to an LTE smartphone (and even when they are on 3G EV-DO data).

After all, the carrier still appears to be at least, in part, participating in the blockade of iPhone on Page Plus Cellular and other Verizon MVNOs, contradicting commitments made to the FCC. While briefly allowing such activations, the situation was quickly reversed, and iPhone is still blocked. Verizon Wireless has not responded and/or declined all requests for comment from PhoneNews.com on that matter.

Getting to the iPad…

Now we get to the iPad. Many were concerned that iPad would mark a change to the policy. After asking Verizon a few times, and not getting an answer, we decided to fork over $700 of our own money, and get an answer.

We put our unlimited smartphone micro-SIM into our third-generation iPad, and powered it up. Setup went by smoothly, and after a few minutes of device provisioning… everything worked. All the device’s features worked perfectly over Verizon 3G and LTE. We were able to connect, pull up web sites, check email, without issue.

Oh, and one final thing…

We were also able to get the iPad’s mobile hotspot function working as well. Our in-house Verizon smartphone micro-SIM was also provisioned with Verizon’s special $30 grandfathered hotspot data option.

We have not tested the iPad on AT&T. AT&T may not be fully using 700 MHz spectrum for LTE yet, and as such may not need to abide by its terms for iPad. In either case, AT&T customers on unlimited grandfathered data will be subject to a 3 GB cap on data before being throttled.

PhoneNews.com contacted Verizon Wireless on several occasions, over several weeks, asking for comment on this report. Within hours of our report’s deadline, Verizon did state that they may provide comment shortly. We we share their comments as soon as we receive them.

Update: A spokesperson for Verizon Wireless provided the following response to our investigation.

When customers purchase devices from (Verizon Wireless), they also purchase the appropriate data plan. If they move the SIM to another device they are going to pay for the service they use regardless of the device they use it in.

We have asked Verizon to clarify what they mean by “appropriate”, specifically if Verizon plans any ramifications for customers that do put their smartphone SIM into an iPad (or any other LTE tablet/modem).

Follow-up: Following our report, Verizon further confirmed that grandfathered plans would not be affected or dropped by doing this. We go in-depth with Verizon’s subsequent statements, in a follow-up article.

Christopher Price is the Founding Editor of PhoneNews.com. Today, he leads the team building iConsole.tv - a new kind of Android™ device. He still likes to pontificate... a lot. You can visit his personal blog at ChristopherPrice.net.

Hopefully everyone switches to Sprint’s crappy network so everyone else will be forced to offer unlimited data. And it would be even better if the federal government started forcing all providers to utilize net neutrality (real net neutrality, not the sham we have now in the wireless industry).

You can always do a Change of Financial Responsibility and take over someone else’s account.

I think based on this news though, you may have to pay a bit more than yesterday to take over someone’s coveted Verizon grandfathered plan. This could easily jump the fence beyond iPad, and go straight to Novatel MiFi.

I don’t care much about the unlimited data. Instead, I just want to get the 2GB – $30/month data plan for use with a Droid Razr. Can anyone confirm if a 4G LTE SIM card from the new iPad will allow data to be fully functional in smartphone devices? Verizon Customer Service told me that smartphones REQUIRE voice plans, but tablets do not. That makes no sense to me, as someone that has no use for a voice plan…a smartphone and a tablet are identical other than the size.

I’d like to use my current iPhone 4S plan (Grandfathered Unlimited) and transfer my new iPad to it. (I can activate my iPhone on a line my employer is willing to give me and pay for) Can I borrow a friends Verizon Razor phone (she is currently using it) and take it in to a Verizon store and activated on my account (so I can then have an activated Micro-Sim). Then, a couple hours later give it back to her to activate on her line again? (Can’t she just put her sim back in and poof, done?) Verizon wouldn’t know any different right?

Any gotchas on this one? I just need to get a micro sim without buying a phone I don’t need.

Just to note, about At&T unlimited data… I have the grandfathered Unlimited iPad data plan for AT&T. I’ve used over 20gigs of data without a hiccup or throttling and I have called 4 reps with AT&T (cause I was scared of couse of losing my data plan) if iPad users are cut off for excessive use or are we throttled, all 4 said no, it’s different for the iPad then it is for smartphones. Btw, we kicked our AT&T unlimited smartphone plans in the bucket after hearing the throttling and switched sim cards to Straight Talk -> 7gigs going strong =)

The EVO 4G LTE has an embedded SIM card. Meaning, you cannot replace it. It is in the device however.

Sprint is taking an approach similar to MetroPCS with their use of SIM cards, which is different from Verizon and AT&T. The way MetroPCS and Sprint use SIM cards is to link the device to the SIM, and then provision change SIM when you change accounts. The old SIM is deactivated, and the new SIM is activated. LTE SIMs can be reactivated, so the old SIM in the old device can be reprovisioned at a later date.

In my opinion, this is a good thing. If you leave your phone at home, you can have a spare phone in your car or at your office, that you can swap online. You won’t need to have spare (unactivated) SIM cards. A quick call to customer service (or Sprint.com) will get you back up and running.

The downside, of course, is if Sprint were to start using C-Block spectrum, or other spectrum tied to the FCC’s open access provisions. It will be a lot harder, say, to drop a SIM card from your smartphone into a tablet or mobile hotspot. Today, however, Sprint isn’t required to do that… currently.

In the end, it’s a mixed blessing. You can activate devices more easily (similar to *228 on CDMA phones), but you lose the freedom to take your SIM card from one device to the next. With Sprint desperately trying to hold onto unlimited, unthrottled data, I can see why they don’t want to let you swap SIMs very easily (or in this case, at all) without their inspection of each device swap.

One other common misconception, GSM roaming can still work on 4G LTE devices that support GSM bands, and have an embedded SIM.

I do know (more to the original question) that SIM cards will be making their way into future Sprint devices. Not all will be embedded.

However (and this may not be what folks want to hear), I also expect that those removable SIM cards will not work in any device other than the one they are originally placed in. That means no SIM swapping on Sprint. No unlocked devices.

It shouldn’t be much of a surprise though, Sprint quietly abandoned open access after WiMAX’s first round of stallouts.

I would like to see Sprint use real SIM cards. Not only because I want to easily swap devices, but because I want to be able to drops Sprint, move to Verizon, and pop their SIM into the phone I had been using on Sprint.

Right now I would have to pay a huge ETF, and then buy all new devices at Verizon’s bloated prices.

I would imagine that if everyone used a SIM card, manufacturers would make devices that worked on all carriers. It might have a band hidden like the Samsung Galaxy S 2 having the T-Mobile 3G hidden, but at least we could theoretically use our devices on whatever carrier we wanted.

I would much rather keep a spare SIM card in the car than a spare phone.

Is this information still current? I am travelling from Australia to USA in a month and am hoping to get a Verizon sim for my iPad 3 and using that data as a personal hotspot to run iphones and a laptop as needed (don’t want to change phone sims or plan to make calls other than on voip/skype). This looks like I can get any prepaid sim with a data component and it should work for us?

Reply to Tricia, you can still use 4g Lte sim (whether it’s at&t or verizon) in any device that is 4g. I’ve been doing some research lately on Verizon with their 4G network and as of today (Aug. 4th, 2012) this info is current:
1. Verizon will no longer allow ppl to transfer unlimited data plans (effective July 28th, 2012)
2. Verizon will throttle can throttle your 4G lte device ONLY when your on 3G.
One of my friends told me that you can’t use an AT&T ipad on the Verizon network, I don’t know this for sure. I do know that you can use a Verizon ipad on AT&T, but you won’t get 4G.

If anyone can tell me their average speed on Verizon LTE, I’d appreciate it. Like I said in my comment above, I have at&t unlimited ipad plan and I’m in an HSPA+ area…I get 13down/2up

I’ve asked verizon this, that isn’t a problem (swapping sims in other devices like a mifi or ipad)….what I actually did on one of my Verizon lines recently was go online and “activate or swtich device” I entered my mifi imei. It changed my rate plan to $20, instead of $40 for a smartphone. I kept the sim inside my Droid Razr and called verizon and spoke to a rep to see if my line was all active and they did some provisioning and made it where I could get calls too. So now on one of my lines I pay $20 (the mifi rate) and still have all functionality

I have two lines on Verizon with the grandfathered unlimited data plan. I went ahead and purchased an iPhone 5 LTE at full price to keep my grandfathered account. I then purchased the Verizon LTE 32GB Ipad Mini. I can confirm that the SIM card works in the iPad Mini and has not affected my grandfathered plan.

I can still confirm that it has worked flawlessly for months. If you need to change features on the plan, you must reinsert the sim to an iPhone 5 (any iPhone 5) before making changes on the account via web. Otherwise the web interface will ask you to update plans and it will cancel your grandfathered unlimited plan. You can simply avoid those screens entirely by putting the sim back into an iPhone while managing your Verizon wireless account.